Key points
- NAMA has urged the Federal Government to pair the 2026 Fiscal Policy Measures with stronger support for local vehicle manufacturing.
- The association warned that reduced tariff protection could increase vehicle imports and weaken local assembly.
- It called for the passage of the Nigeria Automotive Industry Development Plan (NAIDP) into law and wider duty differentials.
- NAMA also proposed production incentives, supplier development funding and improved infrastructure for manufacturers.
Main story
The Nigerian Automotive Manufacturers Association (NAMA) has called on the Federal Government to reinforce industrial support measures alongside the 2026 Fiscal Policy Measures, warning that trade liberalisation without adequate safeguards could undermine Nigeria’s automotive manufacturing industry.
In a position paper submitted to the Minister of Industry, Trade and Investment and copied to the National Automotive Design and Development Council (NADDC), the association argued that while recent fiscal reforms support regional trade integration, they should also preserve incentives that encourage domestic vehicle production.
NAMA expressed concern that the narrowing duty gap between imported fully built vehicles and locally assembled units could make imports more attractive, reducing the competitiveness of local assembly plants and discouraging investment across the automotive value chain.
According to the association, Nigeria’s automotive industry remains at a developing stage and still requires targeted policy support to expand production capacity, increase local component manufacturing and create sustainable employment.
The group cited official port statistics showing a sharp rise in vehicle imports during the first quarter of 2026, suggesting that importers had already begun positioning for lower tariffs on fully built vehicles. It warned that continued growth in imports could reduce demand for locally assembled vehicles and slow investment in factories producing components such as tyres, batteries, glass and plastic parts.
To strengthen the industry, NAMA proposed restoring a wider tariff differential between imported and locally assembled vehicles, making consultation with relevant industry agencies mandatory before future automotive policy changes and accelerating the passage of the Nigeria Automotive Industry Development Plan into law.
The association also recommended production incentives, an automotive supplier development fund, priority access to foreign exchange for manufacturers and improved energy and logistics infrastructure to support local production.
The issues
Nigeria has long sought to build a competitive automotive manufacturing industry capable of reducing vehicle imports, creating jobs and increasing local value addition. Industry operators argue that while trade liberalisation can improve affordability, opening the market too quickly without strong industrial policies could discourage investment and weaken domestic manufacturing capacity.
What’s being said
“Making vehicles affordable for buyers and protecting investments that create jobs are not in conflict. Our appeal is that both should move together.” — Bawo Omagbitse, Chairman, Nigerian Automotive Manufacturers Association
What’s next
NAMA is urging the government to review the 2026 Fiscal Policy Measures, strengthen protections for local manufacturers and enact the Nigeria Automotive Industry Development Plan to provide long-term policy certainty for investors.
Bottom line
The association believes Nigeria can achieve affordable vehicle access and deeper regional trade integration while still protecting local manufacturing, provided fiscal reforms are backed by sustained industrial support.
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